=+E14-5 Service department charges Obj 3

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b. Commercial payroll, $9,960 In divisional income statements prepared for Franklin Electrical Company, the Payroll Depart¬

ment costs are charged back to user divisions on the basis ofthe number of payroll checks, and the Purchasing Department costs are charged back on the basis ofthe number ofpurchase requisitions. The Payroll Department had expenses of $44,010, and the Purchasing Department had expenses of $18,720 for the year. The following annual data for Residential, Commercial, and Government Contract Divisions were obtained from corporate records:

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